PENANG – TTM Technologies Inc. is building a new manufacturing plant to address industry requirements for printed circuit board (PCBs) supply chain resiliency and regional diversification.
This cutting-edge plant is highly automated with the facility being constructed on a 27-acre industrial land within Penang Science Park. It has a proposed capital investment of US$130 million with it set to complete by 2025.
As a leading US based global manufacturer of PCBs, radio frequency (RF) components and RF microwave/microelectronics assemblies, TTM’s Malaysia expansion is a direct reaction to customer demands for supply chain resilience and diversification beyond China’s PCB market.
The company selected Penang for the new facility following an exhaustive examination of different countries which takes into account factors like investment and operational costs, accessibility to customers, and supply chain support.
In a press release from the Malaysia Investment Development Authority (MIDA), it was stated that Penang was appealing to TTM due to its well-established electrical and electronics (E&E) ecosystem.
The new factory will serve TTM’s global commercial markets which includes networking communications, data centre computing, and medical, industrial and instrumentation.
Penang’s Chief Minister, Chow Kon Yeow, stated that Penang was chosen as it is recognised as one of the key players in the global semiconductor industry especially in the areas of assembly and testing as well as equipment manufacturing, being in the manufacturing sector for five decades.
“PCB and substrate manufacturing is a growing sub-sector here and I am optimistic that TTM’s addition will further hone abilities for local talents to provide advanced PCB technology solutions,” he said
Construction is estimated to take between 12 to 15 months with equipment installation scheduled for mid-2023. From there, pilot production is scheduled to commence in the second half of 2023, followed by volume production in 2024 and a gradual ramp-up to Phase 1 capacity in 2025.
TTM anticipates that the new facility will generate around US$180 million (roughly RM761.5 million) in revenue at full capacity in 2025. Additionally, the plant was designed to accommodate a 25% upside Phase 2 expansion
MIDA’s Deputy Chief Executive Office (DCEO) of Investment Development, Lim Bee Vian, noted that Malaysia’s comprehensive E&E ecosystem, along with competent local workforce and well-developed semiconductor supply chain are critical building blocks for investors like TTM to expand in the region.
“We expect that TTM’s initiative will have a rippling effect on job creation as well as contribute to the expansion of our local supply chain capabilities in order the fulfil the rapidly changing needs of our E&E sector segments, while at the same time promote innovation in developing fields,” she said.
Meanwhile, president and CEO of TTM, Thomas Edman, highlighted that the new plant is an important chapter in TTM’s mission to offer customers high value-added engineering and PCB product solutions globally.
He added that being among the earliest to venture into Southeast Asia allows for them to respond to their customers’ needs for supply chain resiliency, regional diversification and growth capacity.
In 2021, Penang topped the list of states with the highest approved investments totalling RM83.5 billion. Malaysia’s manufacturing sector also saw a record RM195.1 billion of approved investments.
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